CZI urges caution

The Confederation of Zimbabwe Industries has advised the incoming Zanu (PF) government to handle its indigenisation policy with caution, warning that any hurried implementation of the programme might backfire.

In a recent statement, CZI said the government would be best advised to put on hold a blanket approach to the empowerment policy, suggesting that it should consider input from various stakeholders.

“The government should invest in the expansion of infrastructure and give space for private investment,” reads part of the CZI statement.

It also urged the government to mobilise long-term capital for expansion projects.

President Robert Mugabe told thousands of people gathered at his recent inauguration that the policy would be handled with flexibility in some sectors of the economy.

Until recently, Zanu (PF) was pressing for a 51 percent ownership of shares in foreign-owned companies by locals.

“We will relax some requirements when an investor comes in with his capital, expertise, raw material and technology,” said Mugabe.

Analysts continued to warn Zanu (PF) of an economic meltdown if it persists with indigenization-centered economic policies.

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